Correlation Between Polski Koncern and E Shopping
Can any of the company-specific risk be diversified away by investing in both Polski Koncern and E Shopping at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Polski Koncern and E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polski Koncern Naftowy and E shopping Group SA, you can compare the effects of market volatilities on Polski Koncern and E Shopping and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Polski Koncern with a short position of E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polski Koncern and E Shopping.
Diversification Opportunities for Polski Koncern and E Shopping
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Polski and ESG is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Polski Koncern Naftowy and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group and Polski Koncern is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Polski Koncern Naftowy are associated (or correlated) with E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of Polski Koncern i.e., Polski Koncern and E Shopping go up and down completely randomly.
Pair Corralation between Polski Koncern and E Shopping
Assuming the 90 days trading horizon Polski Koncern Naftowy is expected to generate 0.23 times more return on investment than E Shopping. However, Polski Koncern Naftowy is 4.35 times less risky than E Shopping. It trades about -0.01 of its potential returns per unit of risk. E shopping Group SA is currently generating about 0.0 per unit of risk. If you would invest 5,320 in Polski Koncern Naftowy on September 28, 2024 and sell it today you would lose (669.00) from holding Polski Koncern Naftowy or give up 12.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.18% |
| Values | Daily Returns |
Polski Koncern Naftowy vs. E shopping Group SA
Performance |
| Timeline |
| Polski Koncern Naftowy |
| E shopping Group |
Polski Koncern and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polski Koncern and E Shopping
The main advantage of trading using opposite Polski Koncern and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polski Koncern position performs unexpectedly, E Shopping can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in E Shopping will offset losses from the drop in E Shopping's long position.| Polski Koncern vs. Biztech Konsulting SA | Polski Koncern vs. CEZ as | Polski Koncern vs. X Trade Brokers | Polski Koncern vs. Powszechny Zaklad Ubezpieczen |
| E Shopping vs. Banco Santander SA | E Shopping vs. UniCredit SpA | E Shopping vs. CEZ as | E Shopping vs. Polski Koncern Naftowy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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